About 5,000 Cebu City hall employees will have to wait a little longer for their bonus.
The Productivity Enhancement Incentive (PEI) equivalent to one month’s salary can’t be released unless the City Council approves Supplemental Budget 1.
While councilors agree the PEI, which costs P77.3 million, is urgent and necessary, other items tucked in the P3.32 billion supplemental budget need to be examined.
The bulk of SB 1 covers payment for the balance of the city’s foreign loan for the South Reclamation Project (SRP) or about P2.42 billion, which is the subject of some debate between critics and allies of the mayor in the council.
Councilor Margot Osmeña, head of the council’s budget committee, said the council is still studying SB1 especially the provision on the SRP loan repayment.
“One of the glaring items in the proposed SB1 of 2015 was the proposed appropriation for the PEI which we know is absolutely urgent and necessary. As much as we’d like to approve that immediately, there are other items which need further explanation,” Osmeña said during a special session on Monday.
Each qualified employee is entitled to a PEI equivalent to one month’s salary.
Osmeña said she learned that some City Hall employes already sold their expected bonus to loan sharks.
Osmeña also said that during budget discussions, City Treasurer Diwa Cuevas revealed that the city actually had funds to cover the PEI even before it earned its large revenue from the sale of the two SRP lots.
A resolution was passed by Bando Osmeña-Pundok Kauswagan (BO-PK) Councilors Osmeña, Mary Ann De Los Santos, Nida Cabrera and Eugenio Gabuya Jr. asking Mayor Michael Rama to release the employees PEI on or before September 15.
“The Cebu City Council is aware and sensitive to the employees clamor for the immediate release of the said Productivity Enhancement Incentive (PEI),” read the resolution.
But where will they charge the amount?
City Accountant Mark Salomon said the resolution was “useless” without a budget ordinance.
“We have to wait for the approval of the SB1,” he told reporters.
He said members of the Local Finance Committee already did their part by endorsing SB1 to the council and defended it during budget hearings.
BO-PK councilors earlier proposed a “partial approval” of SB1 where they would only approve the PEI allocation while they continue to discuss other items in the proposed budget.
City Accountant Mark Solomon said a solo allocation for the PEI would not be proper.
“It’s not appropriate for us to just endorse the PEI. Our mandate is for public service, so we have to include those items we deem and think are necessary for public service like garbage tipping fees, payment of the loan, asphalting, repair on bridges.
Councilor Osmeña said it would take time to deliberate on SB1 since they are still awaiting more documentary support.
This includes a copy of the city’s Annual Investment Plan (AIP), Tax Collection Report from the City Treasurer, breakdown of various lump sum accounts from various departments and a report from the Department of Engineering and Public Works (DEPW) on the paving and retreading of various city streets.
Acting Mayor Edgardo Labella said he would call a meeting with councilors and LFC members to resolve the matter.